How to get cash out of your Life Insurance Policy

By | June 25, 2009
If you are terminally ill and own a Life Insurance policy there are options for you to access some of the cash value or accelerate the death benefit. These options must be reviewed with a qualified advisor that knows your current situation.
clipped from www.elderlawanswers.com
Getting Cash From a Life Insurance Policy If You Are Terminally Ill
Unfortunately, a diagnosis of a terminal illness often comes with many expenses. If you need money to pay for your medical care or comfort, you may be able to use your life insurance policy to get some immediate cash. “Viatical settlements” allow terminally ill individuals to sell their life insurance policies. Alternatively, some insurance companies allow you to receive an accelerated death benefit.
A company will usually pay more than the cash surrender value, but less than the death benefit, although the exact price depends on a number of factors. In determining price, companies look at your life expectancy, how long you have had the policy, and the face value of the policy, among other things.
Both viatical settlements and accelerated death benefits could have tax consequences and affect Medicaid planning. Before taking either option, you should consult with a qualified elder attorney.
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